Calculate your multi-asset diversified portfolio's weighted compound annual growth rate (CAGR) and holding allocations.
Overall Portfolio CAGR
Total Buy Cost
₹4,50,000
Weighted Tenure
3.1 Yrs
Current Value
₹7,15,000
Absolute Return
+₹2,65,000
Difference in value
Absolute Gain %
+58.89%
Yield on aggregate cost
| Asset Class | Weight | Tenure | Buy Cost | Current Value | CAGR |
|---|---|---|---|---|---|
| Large Cap Equities | 44.4% | 4 Years | ₹2,00,000 | ₹3,20,000 | 12.47% |
| Mid/Small Cap Stock Pool | 22.2% | 3 Years | ₹1,00,000 | ₹2,10,000 | 28.06% |
| Debt / Fixed Income Mutual | 33.3% | 2 Years | ₹1,50,000 | ₹1,85,000 | 11.06% |
A portfolio CAGR calculator is an advanced asset management tool that solves for the overall compound annual growth rate of a diversified investment portfolio. A simple average of individual asset CAGRs is mathematically incorrect because it ignores the capital weights of each asset and their varying holding durations.
Our calculator solves this by performing a weighted aggregate analysis, mapping purchase costs, current valuations, and holding tenures for up to 6 different asset classes.
Follow these steps to analyze your diversified portfolio performance:
To determine the true aggregate portfolio performance, we compute a weighted holding duration and solve for the geometric compound rate:
Weighted Tenure = Sum(Tenure_i * Buy Value_i) / Sum(Buy Value_i)
Total Portfolio CAGR = [ (Sum(Current Value_i) / Sum(Buy Value_i)) ^ (1 / Weighted Tenure) - 1 ] * 100
Asset CAGR = [ (Current Value_i / Buy Value_i) ^ (1 / Tenure_i) - 1 ] * 100
Asset Weight % = (Buy Value_i / Sum(Buy Value_i)) * 100
This weighted approach guarantees that massive capital holdings contribute proportionately to the overall portfolio returns, while smaller, high-yielding speculative assets do not distort your actual aggregate CAGR.
If you have ₹90,000 in a debt fund yielding a 6% CAGR and ₹10,000 in a small-cap stock yielding a 40% CAGR, a simple average suggests a 23% CAGR. However, your actual portfolio is dominated by the debt fund, resulting in a true weighted return of only 9.4%.
Different asset classes carry varying risk-return profiles. Equities offer high CAGR potential but with high volatility, while bonds and cash offer lower CAGR but provide portfolio stability. A healthy asset allocation optimizes portfolio CAGR relative to your risk tolerance.